Imagine the scene. You are sitting on a balcony overlooking the sea. Your rental manager has just told you the latest payment is in your account. You are enjoying the year-round sun in a prime piece of real estate for free. When you are not here, this place will be giving you money – all without lifting a finger. That is why so many people are interested in investing in real estate abroad. There is always an opportunity somewhere, and you get an asset that gives you a holiday home when you need it and a revenue stream when you don’t.
So, where are the best places to invest in real estate in 2022?
The answer is not entirely straightforward as it all depends on what you want from your investment. Recent figures suggest top locations from a financial perspective are the US, UK and Germany, but as we have outlined above, investing in overseas property is about more than just the money. So, we have come up with three options that will blend an unforgettable experience with a healthy return.
PORTUGAL
One of the prime areas for a second home under the sun is Portugal, particularly the Algarve. Portugal has everything: 300+ days of sunshine every year, fantastic food, vibrant cities and world-class beaches. In recent years, the existence of the golden visa has also attracted investors looking for a backdoor entry to European citizenship. Although that has been changed recently to exclude the usual property hotspots, it is still available elsewhere.
Prices are expected to rise not only in the usual places like the Algarve but also in lesser-known areas in the north. These still offer year-round sunshine, great towns, and beautiful beaches, but the prices are a bit lower, which means they have more room to climb.
Over the past decade, property prices in Portugal have increased by over 56%, with the prospect of more to come. It offers the ability to invest in an up-and-coming area or benefit from the traditional sure-fire bet of one of Europe’s top holiday destinations.
PANAMA
Best known for its canal and cigars, Panama opened up to investors after the Americans left. They set about quickly developing an economy with fast-growing tourism, banking and real estate sectors. They were incredibly successful, and property in Panama has seen fantastic gains in both prices and rental yields.
It also proved remarkably resilient after the economic crisis of 2008. Although it experienced a dip, it rebounded stronger, and the same is true now. Like everywhere else, it suffered during the pandemic, but investors are now suggesting this is a great time to buy the Panama dip and ride the wave of its recovery.
MEXICO
The real estate market in Mexico is bursting with opportunity, especially when it comes to the Riviera Maya. Stretching for 80 miles along the Yucatan Peninsula from Cancun to Tulum, this is an incredible paradise of pristine white beaches, sapphire blue water and a jungle bursting with wildlife. If this area was once quiet and mainly fishing villages, it is today a magnet for the wealthy elite. Luxury properties are springing up all over the place, drawing people from all over the world.
Plans for an airport in Tulum opening in 2023 will also make it even easier for visitors near and far to get here, which means the tourism boom the region has already enjoyed is nothing compared to what is coming.
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